Back in January, rumors were flying that a new Android-based handset at Mobile World Congress. In late March, reports surfaced that carriers and others who saw the Dell prototype were disappointed by it.

The last thing Dell needs is another embarrassing fiasco like its pathetic attempt to enter the media-player market. In the wake of the stunning success and dominance of the Apple iPod, Dell came out with a line of me-too, ho-hum music players called and .

Dell simply doesn't have the design culture to produce a cell phone even approaching the Palm Pre -- let alone the iPhone -- in coolness, simplicity or appeal. The only way for Dell to be a serious player in the handset market is through acquisition.

Palm is the perfect acquisition for Dell. The Palm Pre targets exactly the kind of enthusiastic technical power user that already likes Dell laptops and PCs. The Pre isn't a dumbed-down consumer phone, a boring-as-wood business phone or an also-ran Android phone. It's the perfect flagship handset to launch Dell into the global handset in a big way.

Palm also has a strong legacy in business, which fits with Dell's positioning.